An assumption of the neoclassical theory of growth is that
A) people receive only subsistence real GDP per person.
B) all technological advances are the result of chance.
C) the marginal product of all types of capital increases as more capital is accumulated.
D) knowledge has diminishing returns.
B
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Explain the logic behind the First Theorem of Welfare Economics
What will be an ideal response?
What is true of both expansions and recessions?
a. There is a poorer than normal match between workers and their jobs. b. The labor market clears. c. The economy operates at its potential output. d. Cyclical unemployment is zero. e. None of the above.
If the required reserve rate is ten percent and banks do not hold any excess reserves and there are no changes in currency holdings, a $1 million open market purchase by the Fed will result in deposit creation of:
A. $10 million. B. $90 million. C. $9 million. D. $900,000.
?
In Exhibit 3-11, in Panel B the movement from point A to point C describes a(n):
A. increase in both demand and supply, where the increase in supply is relatively bigger. B. decrease in both demand and supply, where the decrease in supply is relatively bigger. C. increase in demand and a decrease in supply, where the decrease in supply is relatively bigger. D. decrease in demand and increase in supply, where the increase in supply is relatively bigger.